You must first consider how potential clients will interpret your name. Your firm might do well with a name that stands out or is memorable. However, it might not be the ideal option if your name is well-known or challenging to say. Make sure your company name is simple to spell and easy to remember.
Whether another company is already using your name as a brand is something else to take into account. Before settling on a name, conduct your homework because you don’t want to later face legal problems. To find out if your name is already taken, you can conduct an online search on existing trademarks.
Let’s now discuss the pertinent queries regarding taxes and licenses. You must still disclose any cash payments you receive for your firm on your tax return. To report your income to the IRS, utilize a 1099 form. Regardless of whether it is cash or not, you must record all income you get. Speaking of 1099 papers, you might be curious about how much money you can earn before you have to submit a claim. The answer is at least $600. You are exempt from reporting income of less than $600 per year. However, you must file a tax return if you receive $600 or more.
And finally, you might be asking if you need a license if you’re selling on a website like Fiverr. The answer is based on your location and the products you are selling. Anyone conducting business within a certain city or state must get a business license. The requirements in your area should be confirmed with your local government.
In conclusion, choosing to operate under your own name can be a wise move, but it’s crucial to take all of the aforementioned concerns into account. In addition, whether your income comes in cash or not, it’s crucial that you disclose it on your taxes. Additionally, if you’re selling on a website like Fiverr, be careful to research the licensing requirements in your area. You may launch your business with confidence if you keep these things in mind.